New York (Reuters) -Bitcoin hit a record high on Tuesday, fueled by investors pouring money into U.S. spot exchange-traded crypto products and the prospect that global interest rates may fall.
The world’s largest cryptocurrency hit a high of $69,202, topping November 2021’s all-time peak of $68,999.99. Investor interest has increased since the Securities and Exchange Commission approved 11 spot bitcoin ETFs in late January.
SERGEY NAZAROV, CO-FOUNDER, CHAINLINK, SAN FRANCISCO, CA
“Bitcoin’s price often reaches new highs that are not just small bumps, but large leaps beyond the previous records. This suggests that we may be at the beginning of a new positive market cycle for Bitcoin. When Bitcoin’s price surges, it attracts more capital to the ecosystem, which fuels innovation and development within the space.”
STEVE SOSNICK, CHIEF STRATEGIST, INTERACTIVE BROKERS, GREENWICH, CT
“Considering bitcoin’s recent rocket ship rise and proximity to a record, a new high seemed all but inevitable and now its mission accomplished for crypto enthusiasts. Demand for the newly listed ETFs is the reason for the recent run-up according to conventional wisdom. However, activity at our firm shows much more interest in crypto related stocks like Coinbase and Marathon Digital rather than the ETFs themselves.”
“Bitcoin has essentially been going straight up for several days. It seemed like a push to the record. Once we got there its normal to see a little bit of profit taking when any asset becomes so extended.”
MATTHEW TUTTLE, CHIEF EXECUTIVE OFFICER, TUTTLE CAPITAL MANAGEMENT LLC, RIVERSIDE, CONNECTICUT
“The spot ETFs are a game changer as they open up Bitcoin to a whole new group of investors that never would set up a bitcoin account somewhere.”
“Nothing goes up in a straight line, and Bitcoin is going to be volatile, but this makes it a viable asset class in my opinion and something that should be traded, or a small part of your portfolio for diversification.”
GEOFF KENDRICK, HEAD OF DIGITAL ASSETS RESEARCH, STANDARD CHARTERED
“ETF inflows are now net USD7.5bn and open interest on exchanges (when you add futures and options together) have surpassed the previous 2021 highs.”
“I continue to think this is a one-off re-rating akin to what happened with gold after the gold ETFs were introduced in 2004. As a result I stick to my end 2025 $200k forecast.”
“US pension money is likely main driver of ETFs and retail money of exchange open interest.”
STUART COLE, CHIEF ECONOMIST, EQUITI CAPITAL, LONDON
“Bitcoin – and indeed other crypto currencies are also performing better as well – are now seen as more legitimate investment destinations following the approval by US regulators of their inclusion in ETFs. So, they are now being used as an alternative to using gold when markets are looking to hedging against increased risks, higher interest rates etc. So no surprise I think that, when you see the gold price rallying, cryptos are doing the same.”
NATHAN MCCAULEY, CEO AND CO-FOUNDER, ANCHORAGE DIGITAL, SAN FRANCISCO, CA
“The Bitcoin all-time high marks a turning point for crypto. Traditional institutions were once sitting out; today, they are here in full force as the principal drivers of the crypto bull market.
If you want to know why institutions are here for the long term, just look at the underlying economics. Between the new ETFs and upcoming halving, demand for Bitcoin is rising while supply is diminishing.
The industry used the bear market to build a more mature market structure, bringing traditional investment vehicles—like SEC-regulated ETFs—to crypto.
Now, we are seeing exactly what happens when the market has safe, secure, and compliant access to the asset class—and institutions are just getting started.”
ANTONI TRENCHEV, CO-FOUNDER, NEXO, ZUG, SWITZERLAND
“Bitcoin recapturing its old high of $69,000 inspires a new set of superlatives for the oldest cryptocurrency that continues to divide opinion and conquer all comers with its returns.
Bitcoin has been propelled past its 2021 high by a bunch of ETFs that are squeezing supply and that means its trajectory looks set to continue towards $100,000 and beyond.”
ALVIN TAN, HEAD OF ASIA FX STRATEGY, RBC CAPITAL MARKETS, SINGAPORE
“One part of (bitcoin’s rally) has to do with the generally positive sentiment on risk in general. You can see that in the all-time high in the S&P 500 and Nasdaq. The other part of it is definitely the institutionalization of interest in bitcoin through the ETFs that have been launched.”
“Finally I think after quite a volatile two year period where there were a lot of scandals about crypto exchanges and crypto personalities, we haven’t had any of that for a few months, so we’re maybe seeing the dust settling on that.”
“I’m not quite sure how one would value bitcoin, but certainly I think the rise in the last couple of months is quite extraordinary. I don’t really know if it’s going to continue at this speed.”
(Reporting by the Global Finance & Markets Breaking News team)
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